Western powers turned their attention to the economic and humanitarian fallout of the war in Ukraine on Thursday as US President Joe Biden held talks with the EU in the final leg of an all-day diplomatic showdown.
After a Nato summit that promised more defence against Russia and a G7 commitment to enforcing sanctions on Moscow, the EU talks were expected to produce an agreement on loosening Russia’s hold over Europe’s energy grid.
European Commission president Ursula von der Leyen said the EU and Mr Biden would present a “new chapter in our energy partnership” on Friday in which the US would provide more liquefied natural gas to fill the Russian gap.
She said the goal of talks between the EU’s 27 leaders was to agree joint purchasing and joint storage of gas, exploiting the bloc’s economic weight in a manner compared by officials to the acquisition of coronavirus vaccines.
“The single most important thing that we have to do in the West is be united,” said Mr Biden as he praised allies for co-ordinating a rapid response to the invasion.
But agreement is less likely on the question of cutting off the Russian oil and gas imports that are some of the Kremlin’s most lucrative money-spinners, with energy expected to dominate talks on Friday.
Supporters of an embargo say Europe’s fossil fuel purchases are effectively financing the attacks on Ukraine, which several senior figures on the EU have described as amounting to war crimes.
Polish Prime Minister Mateusz Morawiecki urged colleagues as he arrived for the European Council talks: “The sooner we understand that this is the main oxygen for the Russian war machine, the better.”
However, German Chancellor Olaf Scholz said oil and gas had deliberately been left out of the sanctions packages because of the reliance of some European economies on Russian fuel.
Irish leader Micheal Martin said he was open to going further on sanctions but said leaders had to ensure that energy-related measures had the effect of punishing Russia rather than members of the EU.
Another issue facing leaders is the refugee flow out of Ukraine that has left neighbouring countries dealing with millions of refugees and Poland in particular starting to feel the strain.
Mr Morawiecki, whose country has taken in more than two million people, said he expected his EU colleagues to provide new funds for humanitarian assistance and to be “at least as generous” as during the migration crises of 2015 and 2016.
“We cannot limit our support for refugees only to money which is already included in some other budgets of the European Union,” he said. “We have to think out of the box.”
European Council chief Charles Michel is proposing an international donors' conference and what he calls a trust fund to support humanitarian assistance and reconstruction in Ukraine.
Mr Biden's administration announced that the US was willing to welcome up to 100,000 Ukrainians with a focus on those who already have family living in America.
The president will visit Poland on Friday and hear from humanitarian experts on the refugee crisis, the White House said, but he will stop short of entering Ukraine as the war with Russia enters its second month.
Nato earlier on Thursday promised to shore up the defences of Ukraine and its own members in what Secretary General Jens Stoltenberg said was a changed security environment.
Mr Stoltenberg, who unanimously had his term extended until September 2023 on Thursday, said Nato would offer Ukraine more military aid as well as equipping it for any chemical, nuclear or biological attack by Russia.
Nato will look to protect its own borders by setting up four new battle groups in Romania, Slovakia, Hungary and Bulgaria to shore up an eastern flank exposed to a newly hostile Russia.
Mr Biden hailed the West's response as a show of unity which Russian President Vladimir Putin would not have expected, and said Nato had “never been more united than it is today".
But the alliance stopped short of granting Ukrainian President Volodymyr Zelenskyy's request that one per cent of Nato's tanks and planes be donated to the country's war effort.
Mr Zelenskyy told the closed-door Nato meeting that Ukraine had been through “a month of heroic resistance ... a month of the darkest suffering” since Russia launched its invasion.
Nato's headquarters also played host to a G7 meeting at which the group of rich democracies promised to stop Russia using gold reserves to prop up its economy.
The leaders also said they would do what was necessary to prevent a food security crisis caused by war in Ukraine and economic crisis in Russia, two of the world's top wheat producers.
“We commit to provide a sustainable food supply in Ukraine and support continued Ukrainian production efforts,” they said in a four-page statement.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
BUNDESLIGA FIXTURES
Friday Hertha Berlin v Union Berlin (11.30pm)
Saturday Freiburg v Borussia Monchengladbach, Eintracht Frankfurt v Borussia Dortmund, Cologne v Wolfsburg, Arminia Bielefeld v Mainz (6.30pm) Bayern Munich v RB Leipzig (9.30pm)
Sunday Werder Bremen v Stuttgart (6.30pm), Schalke v Bayer Leverkusen (9pm)
Monday Hoffenheim v Augsburg (11.30pm)
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Draw
Quarter-finals
Real Madrid (ESP) or Manchester City (ENG) v Juventus (ITA) or Lyon (FRA)
RB Leipzig (GER) v Atletico Madrid (ESP)
Barcelona (ESP) or Napoli (ITA) v Bayern Munich (GER) or Chelsea (ENG)
Atalanta (ITA) v Paris Saint-Germain (FRA)
Ties to be played August 12-15 in Lisbon
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope